Elon Musk Slashes White House Role Amid Tesla’s Profit Crisis

 Elon Musk, Tesla’s CEO, announced on April 22, 2025, that he will significantly scale back his role in the Trump administration’s Department of Government Efficiency (DOGE) starting May, following Tesla’s alarming 71% profit drop in Q1 2025. 

Musk, who has served as a special government employee advising on federal budget cuts, cited the completion of critical DOGE tasks, stating he would reduce his involvement to one to two days weekly until his tenure ends on May 30. The decision comes as Tesla grapples with a $409 million net income, down from $1.39 billion, and a 9% revenue fall to $19.3 billion.

Musk’s White House role, while initially boosting his influence, has triggered a consumer backlash, with protests and boycotts linked to his alignment with controversial policies. Tesla’s earnings report highlighted “changing political sentiment” as a key factor in its 13% delivery decline, the worst since 2022. Analysts argue that Musk’s polarizing presence has alienated some of Tesla’s core demographic, exacerbating challenges from an aging vehicle lineup and global competition.

On an investor call, Musk expressed confidence in Tesla’s future, emphasizing new affordable models and autonomous driving advancements. However, his reduced DOGE commitment signals a strategic pivot to refocus on Tesla’s recovery. Investors are cautiously optimistic, but the road ahead remains fraught with economic and political hurdles.